Abstract

The case study “Merger, Sale, or Partnership: Disney’s Options in India” explores the strategic choices that were available to The Walt Disney Company (Disney) with regard to its Indian operations – Disney Star (Star) – that was experiencing a decline in profits despite robust viewership. Star became a part of Disney following the latter’s acquisition of the worldwide film and TV assets of 21st Century Fox (Fox) in 2019. The case study assesses Disney’s current position in India – its growth areas and challenges with regard to subscriber numbers and revenues. The case explores how a merger, sale, or partnership might help Disney overcome its current problems and leverage opportunities in the Indian market. Finally, it deliberates on how a potential merger between Disney and India-based multinational conglomerate Reliance Industries Limited (Reliance) to create one of the largest media & entertainment entities in India worth US$ 10 billion could address Disney’s problems.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Analyze the global expansion strategies of multinational corporations in the entertainment industry.
• Examine the motivation behind companies using the M&A route to expand into emerging markets like India.
• Scrutinize post-M&A integration challenges
• Evaluate the various strategic options available to companies to overcome post-M&A challenges

Keywords

Mergers; Acquisitions; Importance of M&As; Global Expansion; Cross-border M&As; M&A Valuation; International Market Entry; Business Integration; Strategic Decision-Making; Competitive Dynamics; Objectives of M&As; Post-M&A Integration Challenges; Antitrust; Localization; Globalization